Prime Minister Stresses Deficit Reduction Ahead Of Budget 2015

I stress the importance of continuing the Government’s deficit reduction measures and ensuring the country achieves a balanced budget by 2020.

The Government is on track to meet its fiscal deficit targets, which include reducing the deficit to 3.5% by the end of this year and 3% by the end of 2015.

I believe that it is wrong to pass the burden of debt to the next generation. We must pass on a stronger economy with less debt. We must do what is right for Malaysia’s economy, not what is popular. By doing so, we will ensure long term prosperity for the people.

We must remain committed to subsidy rationalisation, as this is because our fuel subsidies have increased from RM1.6 billion per year in 2002, to RM2 billion per month in 2014. This is because in the long-term, the current levels of subsidies are unsustainable.

Budget 2015 would be “pro-rakyat”, and includes measures to ease concerns over the cost of living. Bajet 2015 would help to enhance job opportunities, improve education and create more affordable housing.

BR1M will continue as it is part of our manifesto. It is part of our subsidy rationalisation. By switching from blanket subsidies to more targeted support, we are getting better value for money.